Critics argue that local hiring requirements reduce the number of bids for government contracts and have complex requirements that prevent contractor competition, driving up costs for businesses and municipalities. Hiring ordinances and purchasing programs may be less accessible to microbusinesses with limited capacity, and supply chain barriers can make it difficult for small businesses to provide goods at competitive prices. Large companies have commonly raised legal challenges to these requirements, arguing that they are discriminatory, and courts have often ruled in their favor. In 2023, the Supreme Court’s affirmative action ruling created legal uncertainty for businesses that promote diversity in hiring and recruitment. Most recently, the Supreme Court ruled that the Minority Business Development Agency, which helped BIPOC-owned businesses gain access to capital and government contracts, must serve all business owners regardless of race.